Huayu: Starting from joining the mainstream entertainment industry in 96

Chapter 18, Section 18: All Eyes Turn to Me

Back at Shengying Media's office.

Chen Yu was on the phone.

Chen Liang and the others were busy with training and were not in the office.

Wang Sheng sat down at his desk, spread out his manuscript paper, and began to meticulously refine the "profit-sharing rights" plan he had conceived in his mind.

He combined his vague understanding of various equity incentive and fundraising models from his previous life and tried to adapt them to the special environment of the Beijing Film Studio in 1996.

The core of the plan is to separate all low-end, mid-end, and mid-to-high-end wedding videography services from the company and establish a separate studio/project – "Image Memory".

Source of dividends: 30% of the after-tax profits generated by the project each year will be set aside as a special dividend fund.

Subscription units (shares): A total of 1000 units are available, with each share of dividend rights costing 2000 yuan. For every 2000 yuan subscribed, one share of dividend rights will be awarded.

Dividend Calculation: At the time of annual dividend distribution, the dividend amount received by each dividend right = (Total annual dividend pool amount of the project / Total number of shares issued). For example, if the project's annual profit is 100 million, the dividend pool is 30, and the total number of shares issued is 1000, then each dividend right will receive a dividend of 300 yuan. The rate of return is entirely linked to the project's profit, with no upper limit and no lower limit (the safety of the principal depends on the success or failure of the project).

Restrictions on rights: The dividend right only grants the right to income, but has no voting rights or ownership, and cannot interfere with the daily operations of the company and projects.

Subscription Scope: Limited to full-time employees (including retirees) of Beijing Film Studio, subscribing as a family unit. Each family is limited to a certain number of units (e.g., 5-10 units) to avoid excessive concentration and the risk of violating the red line.

Holding and Transfer: The subscription must be held for a full three years. After three years, if necessary, it can be transferred among employees of Beijing Film Studio. The transfer price shall be negotiated between the two parties, but the company has the right of first refusal to repurchase.

This move not only ensures the stability of initial funds but also provides employees with a future exit channel. If the company performs exceptionally well in the future, it can gradually repurchase dividend rights, thereby reducing the pressure of long-term dividend payments.

Management method: An "Employee Profit Sharing Management Committee" (5-7 people) is elected by the subscribing employees. The committee is responsible for supervising the calculation and distribution of profit sharing funds, communicating with the company on behalf of the shareholding employees, but does not participate in business decision-making.

Use of funds: The funds raised will be used specifically for purchasing photography, lighting, recording and other equipment required for "Image Memory" and for working capital, with independent accounting and dedicated use.

Risk Disclosure: This project is clearly stated to involve market risks, operational risks, and uncertain investment returns. Expectations may not be met, and there may even be a loss of principal. Subscription is based on voluntary participation and trust in the project team.

……

After careful consideration, Wang Sheng felt that the plan not only preserved the equity integrity of the parent company, "Shengying Media," but also raised funds through a "project" with clear assets and contractual backing, thus reducing the employees' concerns.

The price of 2000 yuan per film is not out of reach for most dual-income families at Beijing Film Studio.

Linking revenue directly to project profits can better stimulate employee participation and support.

He quickly wrote down the key points of the plan, glanced at his watch, and realized there was still some time before noon.

He picked up the plan and went to the administration building again.

……

In the factory director's office.

Han Sanping carefully examined the proposal presented by Wang Sheng, his fingers occasionally tapping lightly on the paper.

“Only the profit-sharing rights will be affected, not the equity... Independent accounting for projects... Purchase restrictions for internal employees…” Han Sanping pondered, “Your mind is certainly quick. Tell me, why insist on not touching the parent company’s equity?”

Wang Sheng sat up straight and explained earnestly, "Factory Director, the shares of the parent company, 'Shengying Media,' represent the foundation and future potential of our entrepreneurial endeavors. A low valuation now, easily diluted, would be irresponsible towards the future. Moreover, a complex shareholding structure will cause significant trouble when introducing strategic investment or pursuing further development in the future."

He pointed to the plan: "And this 'project profit-sharing right' has a clear objective—it's specifically for the equipment funding needed for this business. It operates and is accounted for independently, with clearly defined risks and returns, and it won't involve other potential high-end businesses or future plans of the parent company."

For employees, the investment is in tangible project contracts that they can see and touch, and the returns are directly linked to the project's benefits, making it clear and easy to understand.

For the factory, it's a good thing that employees can participate in and support the reforms and share the fruits of development in this way, which can also alleviate the employment and economic pressure in the residential area.

Once future project profits stabilize or even increase, and the company has sufficient cash flow, it can gradually repurchase these dividend rights.

After listening, Han Sanping slowly nodded.

Wang Sheng's logic was very clear: it protected core assets, solved the immediate problems, and took into account the interests of employees and the stability of the factory. He considered everything very thoroughly.

"Is the risk warning clearly stated?" Han Sanping asked as a final question.

This is very important; it is the basis for defining what is outside and inside the red line.

“It’s perfectly clear that subscriptions are voluntary and participants assume all risks,” Wang Sheng replied affirmatively.

"Hmm." Han Sanping handed the plan back to Wang Sheng: "The factory doesn't oppose this in principle, but it won't issue an official document supporting it either. It's a spontaneous market activity between your Shengying Media and its employees. Go and carry it out, be careful with the details, handle things properly, and don't leave any problems behind. In particular, it must be voluntary, and you must explain the risks thoroughly."

"Understood! Thank you, Factory Manager! By the way, Factory Manager, there are two more things I need the factory's help with..."

Han Sanping raised his hand to interrupt, saying, "As long as you don't mention money, I will definitely help if I can."

Wang Sheng smiled and continued, "Factory manager, it's not about the money. I wanted to ask if we could share the factory's procurement channels, and if the factory could provide another warehouse for us to store our equipment."

Han Sanping pondered for a moment: "I'll have the purchasing department help you make the connections, but it can't be done in the factory's name..."

"Yes."

"The space next to your office is empty, so we'll provide it to you as an equipment room. You can figure out how to renovate it yourselves."

In the past two years, Beijing Film Studio has laid off some departments, freeing up some offices.

"Okay, thank you, factory manager. I'll get back to work now."

"Go, go..."

……

Noon. In the canteen of Beijing Film Studio.

Wang Sheng, Chen Liang, Monkey, Da Liu, Xiao Bing, and Chen Yu sat around a table.

Wang Sheng explained the fundraising plan and Director Han's attitude.

"Holy crap! Shengzi, that's a brilliant move! It's like getting all the factory workers to pool their money to buy equipment, and then we can all split the profits!" Chen Liang was the first to react, excitedly slamming his hand on the table.

"They're not helping us, they're investing in our projects and sharing the profits."

Wang Sheng corrected, "Whether this can succeed depends on whether everyone trusts us and believes that this project can make money."

"Let's go talk to each household this afternoon!" Monkey rubbed his hands together excitedly. "They're all uncles and aunties who watched us grow up. We've genuinely secured the contract for the Purple House; they should believe us!"

"That's right!"

Da Liu and Xiao Bing nodded in agreement.

Seeing that everyone's enthusiasm had been mobilized, Wang Sheng immediately began to assign tasks: "This afternoon, Liangzi, you take a few people and go to the small square in the living area to borrow some stools and chairs to set up the venue simply. We'll have the big meeting there at eight o'clock tonight. By seven o'clock, I estimate that all the factory workers should be back, so you go door-to-door to invite and notify them."

"it is good!"

Wang Sheng looked at Chen Yu: "Chen Yu."

"Please give your instructions, Mr. Wang."

Chen Yu sat up straight, his gaze intense.

Wang Sheng: "Have Liangzi find a few girls, and you take the lead. After the meeting tonight, you will be responsible for registering people who have the intention to invest."

"okay."

"..."

……

The afternoon's negotiations with the two clients went exceptionally smoothly.

Perhaps it was the report in the Beijing Evening News that boosted their credibility, or perhaps it was the quality of the advertisement that truly moved people, or perhaps it was the Beijing Film Studio's background that once again exerted its influence. After consulting in detail and watching the sample film, the two potential clients readily signed the "Golden Jubilee Collection" package contract and paid a deposit.

……

As evening fell, the living quarters of the Beijing Film Studio began to come alive.

People were leaving get off work and school; wisps of smoke rose from chimneys, and the air was filled with the sounds of people.

Around 7 p.m., after most families had finished their dinners, people gradually began to gather in the small square.

In the afternoon, Chen Liang, Monkey, and the others borrowed dozens of benches and chairs from the factory union and various households to set up a simple meeting place in the center of the small square. They even managed to get a battery-powered loudspeaker and a television from somewhere.

People greeted each other and chatted amongst themselves.

"Have you heard? That kid Wang Baoguo is up to something... fundraising?"

"They say they make a lot of money shooting wedding videos, and they want us to invest some money so we can share in the profits?"

"Really? Are you kidding me? Didn't their son get beaten up recently for leading a disturbance?"

"That's ancient history. Wang Sheng is now a general handpicked by Han Laohu."

"It seems to be true. I heard from Chen Liang that they signed a big contract with Purple House."

"How much money do we need to invest? How are the profits split?"

"I don't know, we just came to check it out..."

As darkness fell, the streetlights and the light from the windows of each house barely illuminated the square.

Mosquitoes began to buzz and gather, and many people used fans to fan themselves and drive them away.

Before eight o'clock, the small square was already packed with people sitting and standing, no less than five hundred.

There were elderly retired workers with gray hair, middle-aged key personnel who had just finished get off work and were still wearing their work clothes, and family members who came to watch the excitement with their children.

All eyes were drawn with curiosity, doubt, and a touch of anticipation to the table in the center of the square where a television and a loudspeaker were set up.

……

A few minutes later, Wang Sheng led Chen Liang through the crowd to the center.

Wang Sheng picked up the rather simple horn, patted it, and it made a series of "bang bang" noises.

The entire place gradually quieted down, leaving only the buzzing of mosquitoes and the sound of people fanning themselves.

All eyes were focused on the young man whose head scar had just healed and whose eyes were unusually bright.

"Dear grandpas, grandmas, uncles, aunts, brothers, sisters!" Wang Sheng's voice rang out clearly and powerfully through the loudspeaker throughout the small square.

"Good evening! I'll take up a little of your time. I'm Wang Sheng, the son of Wang Baoguo from the transportation workshop. I've invited you all here today because I have a project I'd like to report on."

A project that gives our own family the opportunity to get rich together!

(End of this chapter)